Who stole $400 million from Mt. Gox? Mt. Gox headquarters in Tokyo. By now, Mt. Gox's fate is more or less sealed. The thefts "went unnoticed for several years." According to the leaked "Crisis Strategy Draft," the thefts "went unnoticed for several years," which means the attackers had access long before price surges turned Bitcoin into a hot topic for the startup crowd. Much of the story doesn't make sense The polite, public explanation for this is that a transaction bug in Mt. Then there's the scale of the theft: 744,408 bitcoins, roughly 6 percent of all the bitcoins in the world. Even the sloppiest of audits should have shown that something had gone wrong In recent days, some in the community have even speculated that the heist could have been an inside job. The same problem cropped up for Silk Road 2.0 The same problem cropped up in the Silk Road 2.0's recent hack, which saw $2.7 million going up in smoke, putting the blame on the very same transaction bug.
Mt Gox collapse could ultimately help bitcoin - NY regulator - Technology Industry News | Market & Trends | The Irish Times - Tue, Mar 04, 2014 The collapse of the Mt Gox bitcoin exchange could ultimately strengthen the virtual currency industry by weeding out weaker operators and prompting more supervision, New York’s banking regulator has said. Japan’s government, however, said it was still trying to figure out how the Tokyo-based company, once the world’s biggest bitcoin exchange, could lose nearly half a billion dollars worth of the virtual currency in a short period, and whether crime was involved. “We still have not had a clear grasp of the situation,” finance minister Taro Aso said after a cabinet meeting today. “(We) don’t know if it was a crime or just a bankruptcy.” Mt Gox filed for bankruptcy protection in Japan last Friday, saying it may have lost some 850,000 bitcoins due to hacking into its faulty computer system. The collapse was another setback for the virtual currency, which started circulating in 2009 and is accepted by some online retailers. “We’ve had several applications. Reuters
Bitcoing statement Triple whammy hits bitcoin price Bitcoin's price has plummeted by around 20% after exchange MT Gox temporarily suspended withdrawals, Apple kicked a popular wallet off of its App Store and Russia outlawed the crypto-currency. Japan-based MT Gox, one of the world's biggest bitcoin exchanges, says in a statement on its site that an "increase in the flow of withdrawal requests has hindered our efforts on a technical level. To understand the issue thoroughly, the system needs to be in a static state." A temporary pause on all withdrawals has been made, with those already in the system returned to users' Mt Gox wallets until the issue is fixed. Bitcoin's price is down 21%, to around $720 on Mt Gox. Although rumblings about withdrawals from MT Gox have been heard for some time, bitcoin-dedicated site CoinDesk also notes that trading volumes have soared over the last day. In another setback to the currency, Apple has taken down the popular BlockChain app - which has been downloaded 120,000 times - from its store.
Haskoin Bitcoin to make big splash at Sibos and Money20/20 Bitcoin values may be languishing at the $400 mark, but financial services interest in the crypto-currency shows no signs of abating, with two of the biggest shows in the banking calendar - Sibos and Money20/20 - devoting significant airtime to the technology. At Sibos, Swift's Innotribe innovation unit is devoting a full day to Bitcoin, with representatives from The Bitcoin Foundation, Ripple, Circle, Ethereum, and the MIT Bitcoin Project, all slated to appear. Acknowledging the regulatory interest in the currency, Innotribe has also invited a group of experts from across the industry, including the EBA, Promontory Financial Group, US Department of the Treasury, the Bitcoin Foundation, Digital Asset Transfer Authority, and the Bitcoin Investment Trust to debate why, when and how cryptocurrencies will be regulated, looking at anti-money laundering risks and to see if self-regulation is possible.
Square builds a register for Bitcoin and Apple Pay Over the past year, it's become a lot easier to buy bitcoin, thanks to services such as Coinbase. And thanks to retailers such as Overstock.com and TigerDirect, it's now a lot easier to to spend them online. But there's still one big pothole in bitcoin's bumpy road to mainstream adoption: Your local coffee shop. That's because most cash register software still doesn't support the world's most popular digital currency. But the situation is about to change, according to Square CEO Jack Dorsey. He says that Square is building a register that will allow companies to accept bitcoin as well as Apple's new contactless payment system, Apple Pay. Reached Monday, the company didn't have any word on when its bitcoin-ready register might be on the market. Today, shops such as Buyer's Best Friend in San Francisco and restaurants such as the Pink Cow in Tokyo accept payments in bitcoin. This article originally appeared on Wired.com
Bitcoin May Never Make It to Wall Street, But Its Tech Will James Angel compares bitcoin to MySpace, the social network that paved the way for far more influential services like Facebook and Twitter. Today’s bitcoin digital currency, says Angel, a professor of finance at Georgetown University, is too flawed to replace existing currencies. But the basic ideas underpinning the technology, he believes, can significantly change how the financial world operates. Many believe that the blockchain can ultimately remake the public stock market altogether. As it revealed over the weekend, Nasdaq OMX—the company behind the Nasdaq stock exchange—is testing a system that uses bitcoin technology to oversee stock trades on a separate market solely for private companies. Angel calls the project “the perfect application for the blockchain.” With companies waiting longer to offer an IPO—and seeking new ways of giving employees added liquidity before going public—Nasdaq’s system could serve a growing need. Peterson believes it will. Market Remaking Go Back to Top.
wired NY Backs Bitcoin Exchange. But It May Not Fly in California Ben Lawsky, New York’s superintendent of financial services, trumpeted the news with a tweet. “Big day. New York issues first charter to a virtual currency company,” the tweet read, just above an image of the charter, complete with Lawsky’s signature and an official New York seal. Lawsky and New York’s Department of Financial Services granted the charter on Thursday to itBit, officially approving the company’s bitcoin exchange for use in the state, and on the same day, itBit opened the exchange to people nationwide, saying the charter provided the legal framework needed to operate in all fifty states. Certainly, the charter is a turning point for bitcoin, the digital currency that has found an audience online and has operated with government approval in many other countries but has been slow to win approval from US regulators. But the turning point isn’t a big as many believe it is. Bitcoin companies are treading on ground where no others have. The Trusted Charter Cut and Paste
Bitcoin – We cover many emerging markets in the startup ecosystem. Previously, we published posts that summarized Financial Technology and the Internet of Things in six visuals. This week, we do the same with Bitcoin. The six Bitcoin visuals below help make sense of this dynamic market: Market Overview: Breakdown of Bitcoin startup list into categories.Number of Companies Per Category: Bar graph summarizing the number of companies in each Bitcoin category.Average Funding By Category: Bar graph summarizing average company funding per Bitcoin category.Venture Funding in Bitcoin: Graph comparing total venture funding in Bitcoin to the number of companies in each category.Global Breakdown of Bitcoin: Heat map indicating where Bitcoin companies exist.Median Age of Bitcoin Categories: Bar graph of each Bitcoin category by median age. 1. Bitcoin Payments: The products needed for merchants and consumers to pay for real-world goods/services using Bitcoin as the medium of exchange. 2. 3. 4. 5. 6. Like this:
Outlook for Blockchain in Payments | First Annapolis Navigator Edition: February 2016 By: Jip de Lange and Chris Dickey Bitcoin is not going to be a major disruptor in payments- but the blockchain could be, and financial institutions around the world are exploring options to leverage it in different ways. This article provides an overview of the key attributes of blockchain technology, as well as a high-level assessment of the potential for disruption in different areas of the market. The opportunities for blockchain technology in payments are many and varied, but they are also highly dependent upon the needs and characteristics of a particular payment arena. At this early stage we see strong potential for blockchain technology to improve areas with relatively weak infrastructure (in particular, global remittances and wholesale transfer markets), but less likelihood that it will have a significant effect on other areas such as retail payments. Attributes of Blockchain Technology in Payments Source: First Annapolis Consulting research.